Question: Suppose we have the following Treasury bill return…
| Suppose we have the following Treasury bill returns and inflation rates over an eight year period: |
| Year | Treasury Bills | Inflation |
| 1 | 11.47% | 14.07% |
| 2 | 12.41 | 17.11 |
| 3 | 10.08 | 11.34 |
| 4 | 9.33 | 8.93 |
| 5 | 9.90 | 11.34 |
| 6 | 12.28 | 13.85 |
| 7 | 15.19 | 18.09 |
| 8 | 17.11 | 18.07 |
| What was the average real return for Treasury bills over this period? | ||
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